Citw Turkish Airlines

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BM003-3-1-BE

BUSINESS ENVIRONMENT

ANALYSE THE INTERACTION OF THE INTERNAL AND EXTERNAL INFLUENCES ON A BUSINESS IN ITS ENVIRONMENT                          

NAME                         : TLEGENOVA BALNUR (TP030145)

                                      TLEUBAYEVA ZHIBEK    (TP029664)

                                      AINUR ZHARMUKHAMEDOVA (TP032900)

                                      ARTUR NURGALIYEV (TP029097)                                        

INTAKE CODE        :  UC1F1401

LECTURER                :  WONG HUEY WERN

Contents

1.0 Introduction        

2.0 PEST Analysis        

2.1 Political aspect        

2.2 Economic aspect        

2.3 Sociocultural aspect        

2.4 Technological aspect        

3.0 Recommendations        

4.0 Conclusion        

5.0 References        

                                                     1.0 Introduction

The Arabs were the first people that start cultivating and trading coffee from the 14th century. Coffee was being grown in Arabia by 15th century and then coffee become well known in Persia, Egypt, Turkey by the 16th century.  By the 17th century, coffee came to European countries including Germany. The first coffeehouses in Germany were opened in 1679-1680 in Hamburg, Bremen, and Hanover. The middle and lower classes introduced the coffee by 18th century.

Nowadays coffee become one of the popular drink in the world. Most of the people start their morning with drinking coffee. There are over than 2, 25 billion cups of coffee are consumed by people every day.  90% of coffee production are taking place in well developing countries where the consumption of coffee is taking place in the industrialized countries. Now Germany is a nation of coffee drinkers and popular for coffee industry.

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                                                           2.0 PEST Analysis

2.1 Political aspect        

 High standards relating particularly to coffee producing methods are becoming more important in the industry and may gain political prominence. Here is some points for political issues in Germany:

• Industry-specific rules and regulations
• The level of relationships between German and countries that produce coffee beans
• The level of political stability within a country
• [pic 3]Tax policy
• Legal

One of the most popular coffee industries in the world is Jacobs Company. This business offers consumer a lot of types of coffee.  First Jacobs was found in Germany. As of February 2014, Jacobs (figure 1.1.) is present in 65 countries and territories.

Figure 1.1.source:http://markpoldistributors.com

It can be clearly seen that these countries already communicates with Germany through this business and more others. So, this fact already tells that Germany has business communication with those 65 countries and more in other sectors, which is highly effect on the government to become more and more popular.

        - Germany spent more than 30 times as much collecting taxes on coffee beans ordered online from abroad than it received in the tax revenues, the accounting office said on Tuesday. Some 4,000 Germans who bought coffee over the Internet from other EU countries but failed to pay the coffee tax have been charged between a few cents to 10 euros ($14.81) in taxes and fees, said Dieter Engels, head of Germany's Federal Accounting Office. Currently set at 2.19 euros per kg. Engels said that other administrative costs often exceeded the amount collected. It usually takes up to a year for customs to handle the cases.

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                         Figure1.2 source:http://alamy.com

       “While the Germany is one of the few European countries to levy a special coffee tax which is financial and customs authorities are too lax on some occasions, they go overboard in others," Engels said. - "This has led to somewhat grotesque results in coffee taxation." (Reporting by Sakari Suoninen), ( Reuters Life!)

Taxes in Germany derive from a number of different statutes. In accordance with Germany’s federal structure, taxes are collected on three levels: federal, state and communal. And coffee tax is one of the important taxes (figure 1.2).

          The import and roasting of coffee became state monopolies from the 18th century; royal sniffers sought out rogue roasters. Today's hunt tax, levied by some municipalities, is a distant relative of the 1,200-year-old Jag Regal, which reserved the bag, or part of it, for the lord.

                                          2.2 Economic aspect

             In Gеrmаny coffее is thе most populаr drink, in fаct morе populаr thаn bееr. Pеr cаpitа ingеsting of grееn coffее wаs 6.7 kg. In contrаst, ‘only’ 127.5 litеrs of bееr wеrе consumеd in thе sаmе yеаr. However, sincе 1994 coffее dеmаnd hаs shown chаrаctеristics of inаctivity. Pеr cаpitа consumption hаs grаduаlly dеclinеd аt аn аvеrаgе rаtе of 1.6% pеr yеаr. Gеrmаny is thе lаrgеst ЕU mаrkеt for coffее, аccounting for 23% of thе totаl ЕU mаrkеt. Coffее ingеsting in Gеrmаny аmountеd to 558 thousаnd tonеs which mеаns аn аvеrаgе yеаrly incrеаsе of 0.4% ovеr thе pеriod. Pеr cаpitа coffее consumption in Gеrmаny аmountеd to 6.5 kg. Duе to climаtic rеаsons, coffее is not cultivаtеd in Gеrmаny. Ovеr thе yеаr, thе coffее аcquisitions аrе еxprеssivеly highеr bеforе Еаstеr аnd Christmаs compаrеd to othеr months. This consumption plаn could bе sееn аs cyclic dеmаnd fluctuаtions.